USD/CAD stays bid near 1.2600

• Spot clings to gains just below the 1.2600 handle.
• Support emerged near 1.2550.
• US data next of relevance

The greenback sticks to the positive tone vs. its Canadian counterpart at the beginning of the week, with USD/CAD hovering over the 1.2600 neighbourhood, coming up from Friday’s lows in the mid-1.2500s.

USD/CAD supported near 1.2550

The pair is managing to revert Friday’s losses after CAD appreciated sharply following details from the Canadian jobs report during January.

In fact, spot quickly climbed to tops near 1.2680 in the wake of the publication, although it lost momentum and dropped to the mid-1.2500s soon afterwards.

While CAD appears decoupled from crude oil dynamics, the pair keeps looking to the US-CA yield spread differentials for direction, where yields of the key US 10-year reference gyrates around fresh multi-year tops near 2.90%.

Further news from the positioning front noted CAD net longs at 7-year peaks during the week ended on February 6, as per the latest CFTC report.

USD/CAD significant levels

As of writing the index is up 0.12% at 1.2595 and a surpass of 1.2681 (high Feb.9) would aim for 1.2722 (38.2% Fibo of the 2017 drop) and then 1.2749 (200-day sma). On the other hand, the immediate support aligns at 1.2556 (low Feb.12) followed by 1.2469 (23.6% Fibo of the 217 drop) and finally 1.2437 (21-day sma).